Nintendo’s prime executives answered questions concerning the Japanese firm’s newest financials this week, together with responses from president Shuntaro Furukawa and gaming legend Shigeru Miyamoto. I’ve posted the queries and solutions right here for recreation makers and wannabe recreation makers alike.
On backward compatibility for the Change 2
If Nintendo constructed backward-compatibility into the Nintendo Change 2, would that harm gross sales of the brand new machine? That query was posed right this moment to Nintendo president Shuntaro Furukawa in an analyst name.
He mentioned in response that the corporate determined one of the best course for customers can be to allow them to play their already-purchased Nintendo Change video games on the successor machine. With this selection, they may select to play older video games or choose the brand new ones that intrigued them. In different phrases, this was one of the best worth for customers.
“We will continue to use various ways to convey the appeal of the successor to Nintendo Switch like we have always done as a company that provides integrated hardware-software entertainment,” Furukawa mentioned.
He then mentioned the successor machine can be launched at a later date.
On Nintendo’s rising R&D prices
One other question centered on Nintendo’s rising analysis and improvement bills, which have been up 15% in the latest six months, and the present state of the sport market and rising dev prices.
Shigeru Miyamoto, government fellow and consultant director and board member, replied, “Our research and development expenses have been increasing each year. Since our scale of development has grown, a corresponding increase in costs is, in some respects, inevitable.”
He added, “However, our belief is that what we create is more important than the amount spent on development. We continue refining our products until we are confident that we have created something that our consumers will be satisfied with. With that in mind, what is important is to find ideas that are worth honing, and this has not changed since the era of Nintendo Entertainment System.”
Miyamoto is a legend of recreation improvement, having created iconic Nintendo video games from the Mario titles to Donkey Kong.
“Everyone has different interests, so we cannot make sweeping statements about what ideas are worth pursuing. However, one thing we are sure about is that it should be something which has not existed in the past,” he mentioned. “The more you polish something that has never existed before, the more value it brings. We believe that it is important to nurture developers who take this unique concept to heart, allocate funds to development if necessary, and release games only after we are confident in the product – and repeat this process over and over again.”
And Miyamoto mentioned, “On the other hand, in the entertainment business it is possible to create appealing products based on intriguing ideas, without incurring significant costs. Children’s toys are a prime example of this. We believe that not all products require large costs. Even in the case of video games, with the current technology it is possible to create fun games with a small number of developers in a short period of time. We believe it is important not to lose sight of this perspective.”
Shinya Takahashi, senior managing government officer, mentioned, “I believe unique titles that are small in scale, but worth polishing can be created by expanding on the ideas of a small number of developers, rather than spending large sums of money on every game. While overall research and development costs are rising, there are certain products for which expenses remain relatively stable, depending on our approach.”
He added, “Moreover, the development software and environments for Nintendo Switch have significantly evolved compared to those of previous hardware, which provides various methods to mitigate cost increases. We have established an environment that uses these advancements where Nintendo’s unique producers can create games.”
Ko Shiota, senior government officer, mentioned that from a {hardware} and system perspective, the corporate believes it is very important present an setting that allows recreation builders to work effectively.
“As explained in today’s presentation, the merging of home consoles and handheld systems allowed us to integrate what previously were two separate software development environments. Because we are already familiar with Nintendo Switch, maintaining a similar basis for development environments in the future will allow us to carry over the experience we have already built, which should lead to a reduction in research and development costs over time,” Shiota mentioned. “I believe that the most important thing for Nintendo is how we create new ideas. Bigger budgets do not necessarily equate to better ideas, so we hope to continue to focus on a process where teams of hardware and software developers share ideas to create interesting things.”
Furukawa added, “In order to create very Nintendo products which integrate hardware and software, we must invest in the development environment. Investments in the development environment, such as the spending for the Corporate Headquarters Development Center, Building No. 2 (tentative name) described in today’s presentation, are a key initiative in our utilization of cash on hand.”
The launch of Nintendo Music and the ambition for Nintendo Change On-line
One other question referred to the launch of Nintendo Music, an utility for music streaming obtainable to Nintendo Change On-line members. The questioner wished to know extra concerning the course that Nintendo is aiming for with Nintendo Change On-line.
Furukawa mentioned the Nintendo Change On-line is designed to boost the expertise of utilizing Nintendo Change and that primary goal stays unchanged.
“Nintendo Music is an app for Nintendo Switch Online members to listen to Nintendo game music on their smart devices. Game music is an important part of our content library, and we believe the service aligns with our strategy to expand the number of people who have access to Nintendo IP. We launched Nintendo Music to deliver this game music to our consumers in a way unique to Nintendo,” he mentioned. “We think that if people listen to Nintendo Music and that brings back memories of playing our games, it might encourage them to pick up those games again. In turn, we hope that Nintendo Music will become an additional reason for people to maintain their Nintendo Switch Online memberships.”
Miyamoto’s phrases for brand new staff
One other question referred to a chat that Miyamoto offers to new staff yearly, as referenced in an article concerning the Nintendo Museum. The questioner requested how a genius like Miyamoto may move alongside his inventive considering to others within the firm.
Miyamoto mentioned he didn’t consider himself as a genius and as an alternative, “I consider myself quite ordinary.”
He mentioned, “Each year, I give a talk to about 100 to 200 new graduates and mid-career hires, and afterward people often say that they were wondering what kind of person I was and were relieved to see that I was surprisingly ordinary. I often think it would be fun if I didn’t have to work, so I’m always thinking about things like, well, if I have to work, how can I do it more efficiently. And if I am going to do the same work, how can I make it more of a hit, because when a project is a hit it makes future work easier. In the talk I give every year, I touch on those challenges that come with creative work.”
He mentioned his annual speak is split into three elements. The primary half covers the historical past of Nintendo, beginning with hanafuda enjoying playing cards, transferring by way of toys, and resulting in the way it grew to become the leisure firm it’s are right this moment. The second half focuses on what Nintendo values in recreation creation and what its strengths are.
“For instance, I discuss the evolution of the game interface by tracing the development of our controllers since the arcade days,” he mentioned.
Within the third half, he mentioned he addresses recreation design. New builders, particularly those that are avid avid gamers, oftentimes aspire to create upgraded variations of the video games they’ve performed earlier than, however he explains that recreation design just isn’t about that. Fairly, it’s about observing the world round us and determining the best way to assemble these components into an enticing online game.
“I explain that game design is about planning. That is, it is about assessing what hardware and development environment to use to create the game, whether the desired game can be realized with its available processing power, and engaging in trial and error to bring it to life,” he mentioned. “Many attendees find this perspective refreshing in that it is different from their own concept of game design or feel that they sympathize with our philosophy of product creation. The talk only lasts about two hours every year, so to help employees retain what they have learned, I think it will be useful for them to visit Nintendo Museum to explore the history of our past challenges.”
Takahashi added, “The producers at Nintendo, who develop a diverse range of games, leverage their individual strengths to create unique products. They listen to various stories from Mr. Miyamoto and
collaborate closely with him to create games, each person considering how those ideas can be applied within their own areas of expertise.”
And Takahashi mentioned, “The producers reflect on what Mr. Miyamoto has shared about his philosophy as they create games with their own aptitudes, and this perspective is shared with their development teams in the same form.”
Making {hardware} distinctive and straightforward to developer for
One other question centered on the best way to make a brand new {hardware} machine distinctive in addition to simple to develop for. It’s nice if a tool is exclusive, however software program writer could have a tough time making video games for such a platform. (It’s price noting that the Change is so distinctive that recreation publishers typically make video games just for the Xbox Collection X/S, PC, and PlayStation 5. Video games equivalent to Name of Responsibility don’t seem on the Change).
Shiota mentioned that the distinctive options and traits of Nintendo {hardware} are usually not created by the {hardware} builders alone.
“We work in close collaboration with the software development teams to consider how to deliver a unique entertainment experience. Of course, we also consider the gameplay of other software publishers during this process as well,” Shiota mentioned. “Throughout the development process, we create various prototypes and test how they feel, and then we refine the ones that we think are good. This iterative process is crucial. However, in recent years, not only are the hardware and software important, but the system software responsible for running both is growing in importance as well, making hardware development a collaborative effort involving the three groups of developers.”
Shiota added, “Nintendo has all the time positioned emphasis on introducing distinctive merchandise to the worldwide market, so we are going to proceed to rigorously steadiness uniqueness with the benefit of software program improvement as we attempt to create uniquely Nintendo merchandise.
